FUND.OF CORP.FIN.(LL)-W/ACCESS >CUSTOM<
FUND.OF CORP.FIN.(LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781259898549
Author: Ross
Publisher: MCG CUSTOM
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Chapter 26.7, Problem 26.7BCQ
Summary Introduction

To discuss: The share rights plan and the working of the rights.

Introduction:

The corporate board may adopt a defensive strategy termed as shareholder rights plan in order to avoid being a target firm of the unfriendly takeover. These plans allow the existing shareholders the right to buy extra shares at a discount.

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